Trump Admin Blasts Ford For Ties to China

The iconic Ford Motor Company is acting un-American. That, at least, is the message being sent by the Trump administration, which has escalated its standoff with Ford. Transportation Secretary Sean Duffy sending CEO Jim Farley a letter expressing "profound concern" over the automaker's ties to Chinese companies and warning they could harm both Ford and the broader U.S. auto industry, according to CNBC.

In the letter, dated Tuesday, Duffy questioned Ford's strategic direction with Chinese firms "as it pertains to American national automotive manufacturing integrity, supply chain exposure, and reliance on technologies of foreign adversaries." Ford fired back, calling the letter a "wrongheaded attempt to capture headlines."

At the center of the dispute is Ford's licensing arrangement with Contemporary Amperex Technology Co., or CATL, which lets the automaker use the battery maker's technologies, including production of lithium iron phosphate cells. The deal was first announced in 2023, according to CNBC, but it has drawn renewed scrutiny amid U.S.–China tensions and Ford's plan to apply the technology to energy storage systems.

Duffy also took aim at a framework Farley floated during an auto show in Detroit earlier this year, which the secretary characterized as a proposal "to facilitate Chinese joint ventures on United States soil." Ford disputes that account. The company said the letter contained "factual errors," specifically pointing to Duffy's claim that Farley had proposed a joint-venture framework for Chinese automakers to enter the U.S. market.

"While DOT recognizes the intense competitive pressures of the global market, the Company's recent strategic decisions paint a troubling picture of a foundational American brand actively intertwining its future with Chinese state-backed enterprises," Duffy wrote. He urged Farley to "reflect on these concerns and national necessities and adopt reasonable strategies that prioritize American workers, utilize allied supply chains, and promote the self-reliance and integrity of the domestic automotive industry."

Ford leaned on its domestic manufacturing record in response, reiterating its position as the top-producing automaker in the U.S. and saying it employs more hourly workers in the country than any rival, per the company's statement to CNBC. The company also pressed Duffy to engage directly rather than through the press.

"Ford supports the Trump administration's vision for advancing American innovation and manufacturing," the company said. "Had Secretary Duffy reached out before issuing his letter to the press, we would have been happy to share more details about Ford's U.S. commitment."

Perhaps most telling is the following paragraph from Duffy which specifically highlights how the Trump administration views Ford's current behaviour as un-American. It reads: "When a company intentionally chooses to deepen operational dependencies on strategic competitors, it fails to act as the reliable partner the American public and this DOT require. Attempting to navigate current circumstances in ways that could enrich those very competitors is not a sustainable strategy for the United States. Ford must demonstrate a level of corporate citizenship that prioritizes the long-term resilience and technological sovereignty of the United States automotive ecosystem over short-term arrangements or questionable foreign alliances. Iconic American companies, like Ford, are also expected to out-innovate competitors. To that end, they need to chart clear paths to technological self-reliance."

The exchange marks the latest friction between the U.S. auto industry and the Trump administration, which has generated uncertainty through shifting trade policy and changes to federal rules and regulations. Farley has walked a careful line throughout, praising Chinese competitors while backing the administration's push to bolster domestic manufacturing.

The dispute leaves Ford's CATL licensing plans and its energy storage ambitions exposed to continued political pressure, with no indication from either side that the two are moving toward a resolution.